Conference 7.286::dcu

    And now the civil suits can start right? About time.
    
    			Alfred

    
    Yeah, but all of Mangone's money is in Vegas or Atlantic City, right ;-)
    
    
    Can we sue the casinos for letting him play over his court imposed
    limit? ;-)
    
    
    
    I really don't expect DCU will see that much
    
    
    
    John
    

from today's Globe (first story in business section)

 - trial was 7 weeks
 - 4 convicted of conspiracy, bank fraud and money laundering
 - sentencing set for 9/28 with Mangone, Smith and Cohen
   facing sentences up to 18 years and Devaney up to 8 years
 - "They were lending the money to themselves, rolling over the
   loans and creating new sham transactions in order to escape
   detection of the initial fraud and self-dealing" according
   to Assistant US Attorney Paul Levenson.
 - other prosecutions not ruled out; grand jury to hear more
 - defense claims new trials will be awarded because of
   judicial errors
 - Cohen was the only defendent to call any witnesses
 - "I really think Jim Smith was a victim of the times, rather
   than someone was a victim of him" according to his lawyer.  :-)
 - Cohen wanted a seperate trial which was denied

    I read the Cape Cod Times article this weekend about the trial, but
    failed to keep it.  Mangone received 285 years as his sentence,
    although the article stated that this is realistically 18-20 years of
    real time.  
    
    Does anyone have the Cape Cod times article?  It was much more detailed
    than teh Globe article.
    
    Bo

    
    RE: .4
    
    I believe sentencing is schedule for Sept. 28th.  The article might
    have been referring to the maximum sentence possible.  I'd also like to
    read it if anybody has it.
    

    An account of the conviction appears in the Wall Street Journal July
    12, 1993.  It mentions that the maximum sentence for Mangone is 16
    years.  The was no mention of a monetary fine as potentially part of
    that sentence.

    Hmmm ... wonder if they'll let Mangone do the lottery by phone ...
    
    Glad he'll be going behind bars.  It's PROOF that the DCU was allowed
    to be run by (what turned out to be) a criminal, as far as I'm
    concerned.  How many times will we have to learn that if we are asleep
    at the wheel the likes of him will take advantage of us every time?
    
    Steve

Having read recently that several big time auditing firms have settled out of 
court for failing to discover this kind of thing, has anything been done along 
those lines - other than replacing them ?

Looks like that is the only hope of getting any $ back because , he can continue
to spend it for lawyers in appeals - right

In talking to Chuck Cockburn at the Annual Meeting, he indicated
to myself and a couple other folks standing around that DCU and
the NCUA were in the process of litigating DCU's previous auditors.
I don't know where they are at in the process, but from what Chuck
said, it seemed like things were going to occur in relatively
short order.

./chris

Sentencing was supposed to be Sept. 28.

Anyone hear anything?

    
    Postponed until November...
    

        
        Mr. Mangone has violated the conditions of his release and has 
        apparently fled.  There is a warrent out for his arrest at 
        this time.  His sentencing is scheduled for this afternoon at 
        2:00 p.m. in Judge Young's courtroom - 2nd floor of the J.W. 
        McCormick Post Office and Courthouse in Boston, MA.  All are 
        welcome to attend.
    

        
>        Mr. Mangone has violated the conditions of his release and has 
>        apparently fled.  There is a warrent out for his arrest at 
    
    Now there's a big surprise. Not. I wonder what he'll be living on
    since he claims not to have any of the missing money.
    
>	His sentencing is scheduled for this afternoon at 
>        2:00 p.m. in Judge Young's courtroom - 2nd floor of the J.W. 
>        McCormick Post Office and Courthouse in Boston, MA.  All are 
>        welcome to attend.
    
    Do let us know what he's sentenced with. I have to work this afternoon.
    (I'm assuming that Phil has to work as well but will hear from the DCU
    lawyers whose job it is to know about such things.)
    
    			Alfred

    FWIW, there are now 8 topics discussing Mangone (actually there are 8
    topics with Mangone in the title).

RE: Note 754.2 by PATE::MACNEAL

>    FWIW, there are now 8 topics discussing Mangone (actually there are 8
>    topics with Mangone in the title).

Yeah, there is a couple hundred about DCU.  So what's new?

    
    Well it's confirmed, Mangone has flown the coop.  I've been told there
    is an article in today's Boston Globe.  It is being FAXed to me.  I'll
    try to get it posted ASAP.
    

     His name says it all..."Man-gone"
    

   
    Richard Mangone has jumped bail.  On Friday, 2/11; he did not return home
    after a court approved visit to confer with his lawyer in New York.
    Due at court today for sentencing, Mangone failed to appear.    
    
    (Todays Boston Globe, Business section, page 47)

    
    What's worse is:
    
    [The Boston Globe, Thurs. Feb. 17, 1994, Page 47 & 51]
    
    "Kingpin of credit union scam skips sentencing"
    
    .
    .
    .
    
    "As a condition of his bail on $50,000 unsecured bond, Mangone wore an
    electronic bracelet on his ankle.  The bracelet can determine whether
    he is in the vicinity of his house; it is not a tracking device.
    
    But he was given permission for a daylong trip to New York to visit his
    attorney, William Cagney, to prepare for sentencing.  Cagney declined
    to comment yesterday."
    
    .
    .
    .
    
    How does one "prepare for sentencing"?  Why keep him under electronic 
    surveillance all this time then let him loose when he is supposed to be
    sentenced?  Unbelieveable.
    
    I'll try and enter the entire article tonight.  
    

>    But he was given permission for a daylong trip to New York to visit his
>    attorney, William Cagney, to prepare for sentencing.  Cagney declined
>    to comment yesterday."
>    
>    .
>    .
>    .
>    
>    How does one "prepare for sentencing"?  Why keep him under electronic 
>    surveillance all this time then let him loose when he is supposed to be
>    sentenced?  Unbelieveable.

Well, assuming he was heading off to Club Fed, preparing for sentencing
would include cleaning the gold clubs, finding that tennis racquet,
and buying some new exercise clothes.  :-)

The "prisons" these guys go to are usually fence-less outfits that have
large white lines painted to indicate "out of bounds."  If you behave,
you get to stay.

Of couse, now that he's proven himself a flight risk, they might want
to send him to someplace a little more "secure."  

I wonder if he's still in the country.

Chris

    [The Boston Globe, Thurs. Feb. 17, 1994, Page 47]
    
    
              "Kingpin of credit union scam skips sentencing"

                            By John H. Kennedy
                               Globe Staff

    Richard Mangone was due to face the music yesterday for his role in
    orchestrating a massive loan fraud that reached into two credit unions,
    pushing one of them into insolvency.

    Instead, the Norwell man was at large, having allegedly jumped bail
    Friday.  US District Judge William G. Young sentenced two other men,
    James K. Smith, 51, and Ambrose L. Devaney, 50, in the case.

    Mangone, 48, who in the dying days of the Barnstable Community Federal
    Credit Union gained a reputation as a Las Vegas high roller, failed to
    return home after a court approved visit to confer with his lawyer in
    New York.

    "We regret that he was not available before the court today for
    sentencing, and he did not stand before the court as other defendants
    did," said Assistant US Attorney Victor A. Wild, one of the prosecutors
    in the case.

    Mangone was cofounder of the Barnstable Community Federal Credit Union,
    which was seized by regulators in 1991 after being victimized by the
    second largest credit union fraud ever.

    While three others were also convicted of conspiracy, bank fraud and
    money laundering, Mangone was considered the architect of the scheme
    that drained $30 million from the Barnstable institution and from the
    Digital Employees' Federal Credit Union, which fired Mangone as president
    in 1991.

    The judge sentenced James K. Smith, a prominent builder on the Cape and
    a cofounder of the Barnstable credit union, to 15 years in prison and
    ordered him to pay $20 million restitution.  Young told lawyers it was
    among the heftiest sentences he has handed down in a non-murder case 
    since he became a judge 17 years ago.

    Ambrose L. Devaney, a Rockport developer, was sentenced to 37 months
    and ordered to pay $10 million.  The prison term was less than what
    prosecutors sought because Devaney was viewed "more as a borrower who
    fell in" with others already involved in the scheme and who later tried
    to get out, said defense attorney Michael A. Collora.

    Sentencing of attorney Robert Cohen, who served as counsel to both 
    credit unions, was postponed until March 15.
    
    As a condition of his bail on $50,000 unsecured bond, Mangone wore an
    electronic bracelet on his ankle.  The bracelet can determine whether
    he is in the vicinity of his house; it is not a tracking device.
    
    But he was given permission for a daylong trip to New York to visit his
    attorney, William Cagney, to prepare for sentencing.  Cagney declined
    to comment yesterday.
    
    Mangone was due back by 8 p.m., even as a massive snow storm was sweeping
    through the Northeast.  Prosecutors were alerted the next morning that
    Mangone had not returned.  A warrant was issued for his arrest Monday.

    "The court is operating under the presumption that Mr. Mangone is alive
    and well, having issued a warrant for his arrest," said Wild, the
    prosecutor.  "The government agencies are operating under the presumption
    he is alive and well, because we're looking for him."

    Before Mangone was indicted, he was accused of violating a court order
    to limit his monthly living expense to $8,000.  The order had been issued
    as part of a civil suit filed by federal regulators seeking to recoup 
    the Barnstable credit union losses.

    Mangone allegedly visited the Mirage Casino in Las Vegas seven times
    over an eight month period, spending more than $250,000 on gambling chips.
    During a single day in February 1992, he lost more than $20,000, alleged
    a court-appointed trustee.

    "To say that defendant Mangone is a valued customer at the Mirage Casino
    in Las Vegas, Nev., is an understatement," according to court documents.
    Mangone disputed the allegations.

    I'd put even money on him being back in Vegas...
    
    q
    

    Maybe if they'd put some gaming tables up in the court house he
    would have showed up. :-)
    
    		Alfred

    >> Instead, the Norwell man was at large, having allegedly jumped bail
    >> Friday.  
    
    "Allegedly"?!? 
    
    If Mangone was the "kingpin" and the 2nd-level guy got 15 years and
    a $20M fine...it will interesting to see what Mangone gets.  No wonder
    he skipped town.  At this point, he doesn't have much to lose by trying
    to run.  What else can they do to him beyond what he was going to get
    anyway?
    

    
    Technically, it's $20 million restitution.  We'd get the money (part of
    it), not the government.  After all, it was ours at one point.

    
    
    Does the money get added to our "profit", bottom line, or go to our 
    insurance company?  Of course, that's if we ever get the $$$'s from 
    these jokers...
    
    
    John
    

    
    Sounds like a good candidate for "America's Most Wanted" or
    "Unsolved Mysteries".
    
    
                                                          Steve

    I assume there is still no trace of Mangone?

Scarcer than a DCU branch office, Steve.

    BOSTON(AP) - A $25,000 reward was offered Wednesday for information
    leading to the arrest of a fugitive convicted of money laundering,
    bank fraud,embezzlement and conspiracy.
      The reward for the capture of Richard Mangone was offered by the
    Digital Employees' Credit Union,one of two banks from which Mangone
    and others were convicted of embezzling between $40 million and $75
    million.
      Mangone is the former president of the Digital Credit Union and the
    now defunct Barnstable Federal Credit Union.He and builder James Smith,
    attorney Robert Cohen and Ambrose Devaney were found guilty of
    embezzling from the banks in 1993.
      Mangone was under house arrest while awaiting sentencing,but was 
    allowed to travel to New York in February 1994 to visit his attorney
    and used the opportunity to flee.
      The U.S Marshalls Service said Mangone has been tracked to the
    southern United States, California and Canada and recently was seen
    in Boston, the South Shore and Springfield. An East Boston native, he
    last lived in Norwell.
      Mangone was described as 5-foot-8, 180 pounds with brown eyes
    and brown hair that is thinning in front.
      The Marshalls Service said he was considered armed and dangerous.
    Smith, meanwhile, Has begun a 15-year prison sentence,Cohen 10 
    years and Devaney three years for their roles in the case.
    
    ----------------------------------------------------------------
    Anyone with information about Mangone was asked to call the U.S
    Marshall service at 617-223-9721.
    
    
    
    
    

>      The Marshalls Service said he was considered armed and dangerous.

I will repeat a question I asked in another string regarding this
slimeball just yesterday -

    Who (names) were responsible for hiring this guy initially?

From all appearances, this guy was not simply a "top-executive who
inadvertently and unfortunately got tangled up in white collar crime
through no fault of his own". From all appearances the man had a
crooked background and tendencies/habits.

I for one, as a member of this credit union, would like to know
very explicitily who was originally responsible for offering this
man a job as our CEO.

I take it that would be the original BoD of the DCU.

Can anyone supply me with the names of the original Board Members?

    Certainly, this guy must have come from another Credit Union.  Unless
    our BOD was completely inept, he couldn't have gotten the job without
    the credentials.
    
    - Vikas

I'm not fully up on Mr. Mangone's history, but my understanding is that he had
been a pillar of the credit union community.  It is possible that he just turned
bad.

However, that is now water under the bridge.  The only drops left are to get him
behind bars.

Elaine

>    Certainly, this guy must have come from another Credit Union.  Unless
>    our BOD was completely inept, he couldn't have gotten the job without
>    the credentials.
    
He came from the Barnstable (somethingorother) Credit Union.  He managed
to bankrupt that one completely, but apparently that wasn't known at the
time he switched.

In a way I can see how he could fake the records well enough to get hired
by DCU.  But his high-roller attitude and lifestyle should have caught the
attention of the board at the time.  It certainly sounds very out of
character for the head of a financial institution.

(And at the time the board was fully populated experienced high level
executive types and financial types who certainly should have been better
equiped to recognize this than a bunch of techie engineer types. :-)

	Paul

> However, that is now water under the bridge.  The only drops left are to get
> him behind bars.


Not entirely, Elaine. As Paul points out in .-1, the original BoD should have
been savvy enough to smell this guy out, but apparently didn't do so.

It seems to me that it's quite pertinent to focus on who those folks were.
Heck, I don't know - maybe many/all of them are long gone. If we try to diffuse
or otherwise avoid the question, we appear to sink back into some bad habits
that we've been trying to eliminate over the past several years.

I think .34 has the facts a bit backwards.  Barnstable County Credit Union was
founded after DCU, and he had been at DCU since its inception.  If you have 
questions about the history of the loan scandal, this notes file is one of the
best sources of information on the subject.  I've begun reviewing the history
myself.  For starters, read note 240, which shows how we started to learn about
it.

Also, a key official summary memo is found in 11.132.

Elaine

>                     -< Please don't jump to conclusions >-

No conclusions being jumped to at all.

I was only asking who were the board members that originally hired
Mangone. A simple exposition of fact is all that's required to satisfy
the request.

re: .38

I don't think anyone in this notes file is trying to hide anything from you.  If
the information about the early history of the credit union is not in this notes
file, and you feel it is important, you'll have to do the research through DCU
and/or Digital.  If you learn anything, let us know.

I personally think that DCU was a model credit union until those participation
loans started.  Those days when DCU's rates could not be beat, and you would get
bonus dividends or loan interest rebates were all done under the direction of
Mr. Mangone.  It may be interesting to talk to the folks who hired him, but I
don't see what difference it will make.

Elaine

You're correct, Elaine. Since the info isn't in here, DEFCU is the right place
for me to pursue it. I will let the readership know what I find out. I doubt
very seriously that DIGITAL will be easily forthcoming with any information,
even if they have it, due to the legal ramifications.

    Jack, 344.48 has a starting bit of information by someone who now
    has access to the information.
    
    -- Russ

Thankyou, Russ. Yes - those are helpful.

If someone were to come up with a decent sized black and white photo of
Mangone, I could scan it in, convert it to PostScript, and make the
PostScript file available... Lots of PostScript printers out there. There
are lots of us and only one of him. Wouldn't it be great if one of us
found him?

Art

	Put his picture up on the DCU home page..

							mike

    Well, I kinda agree, but perhaps not on the HOME page.  
    
    I mean...
    
    Welcome to the Republican National Committee Home Page
    
    [.GIF of current chairperson] [.GIF of Richard M. Nixon]
    
    I don't think so...
    
    :-)
    

    I'm pleased to announce that Mr. Mangone is under arrest.  I received
    word this evening that he turned himself in to Federal marshalls in
    Bowling Green, Kentucky.  Word was also heard on radio news stories
    this evening.  Check your morning Boston Globe for their take on the
    story.
    
    The Board will be attending the sentencing hearing, once it is
    scheduled.
    
    Elaine                                                                                                                      
                                      

Very nice article in the Globe, too.   I hope someone will post it.

Elaine

 >>   The Board will be attending the sentencing hearing, once it is
 >>    scheduled.

Why waste your time?  ... the guy's a crook, he's in custody, and he's going to the pokey.
Unless there is some personal sense of payback......

just my opinion....

//bruce

    I didn't read the entire front page story in today's Boston Globe, but
    I remember him saying he's hidden a lot of money, and he now wants to
    see how long it takes the Feds to find it. He says 17 years in the
    banking (financial?) industry taught him a lot. The article says he was
    just tired of running. IMO, no remorse there...
    

>>   The Board will be attending the sentencing hearing, once it is
>>    scheduled.

>> Why waste your time?  ... the guy's a crook, he's in custody, 

    Several of the current board members were instramental in the
    re-birth of the DCU and "changing of the guard" that was in place
    while Dick Mangone was president. And I believe that all of the
    current board members have worked very hard to guide the DCU to
    where it is today and have high hopes for it in the future.

    I would also like to think that Dick Mangone doesn't just slip
    through this last phase unnoticed, after all, he STOLE money from
    you and I. Let him face the people that he stole from.

    I think the new board being present at Mangone's sentencing will
    bring a certain closure to the long hard battle and difficult
    times the DCU has endured. The board can represent the thousands
    of DCU members and don't forget the Barstable CU members that Dick
    Managone stole from.

    Hmmm, maybe I'll stop be there too, they might need somebody to
    hold the door for him as he walks by, "Good bye Dick! Hope you
    meet some nice friends in prison!"

    Charly

    >     I remember him saying he's hidden a lot of money, and he now wants to
>     see how long it takes the Feds to find it. He says 17 years in the
>     banking (financial?) industry taught him a lot. The article says he was
>     just tired of running. IMO, no remorse there...

    All the more reasons to face this scum bag during his sentencing!
    How arrogant can one be?

    I still can't believe that he was released out on just a bracelet
    between his conviction and his sentencing. The judge that allowed
    that should be looked at closely too.
    

> the guy's a crook, he's in custody, and he's going to the pokey.

Unless he doesn't. There's a substantial body of opinion that he turned
himself in on the condition that he do no time in exchange for turning
State's evidence on accomplices.

re: .52

Charly hit the nail on the head.  We want to remind the judge who the victims
were, and how hard we've had to work to recover from his little game.

Elaine

re: .54

>> There's a substantial body of opinion that he turned
>> himself in on the condition that he do no time in exchange for turning
>> State's evidence on accomplices.

His accomplices are already in jail.

> His accomplices are already in jail.

The ones who are already known, are.

    
    How much you wanna bet he'll go to some federal luxury prison for the
    "less hardened" criminals?  You know the ones with a satellite dish in
    every cell, caviar for brunch, afternoon tea :-)...
    
    
    My guess is he won't be in the likes of Leavenworth...
    
    His attitude on challenging the Feds to find his money is galling, put
    him in the worst prison possible, then in order for him to leave that
    prison, make him tell where all the money is. (other than on the Vegas
    crap tables that is!)
    
    I can't imagine any plea bargain possible, the only thing left is the
    sentancing - he's already guilty - and he'll "stand trial" for evasion
    of federal marshall (running away).
    
    I also don't buy the crap about wanting to turn himself in.  guaranteed
    he figured he was close to being caught anyways, so that's what he did
    to help perhaps sway a judges opinion.
    
    Question though, does DCU get to "speak" at the sentancing?  To request
    certain punishment for the record or is this just judges discretion?
    
    
    
    John
    

    The following appeared in "The Boston Globe" on Wednesday, August 30th.
    
                        Fugitive Embezzler Surrenders
    
                            By Judy Rakowsky
                               Globe Staff
    
    With US marshals and FBI agents closing in, a former Norwell executive
    who was the fugitive mastermind of one of the nation's largest credit 
    union embezzlements surrendered yesterday to federal authorities in 
    Bowling Green, Ky., 18 months after he vanished during a New England
    snowstorm.

    A Catholic priest in Kentucky called the FBI and said there was someone
    with him who wished to turn himself in, according to authorities.

    Yesterday afternoon, absent his customary body guard, Richard D. 
    Mangone, head of the defunct Barnstable Credit Union and the Digital 
    Federal Employees Credit Union [sic], appeared at the Bowling Green 
    FBI offices.

    Mangone, 50, of Norwell, disappeared in February 1994 when he had
    court permission to visit his lawyer in New York, a week before he was 
    to be sentenced on his July 1993 conviction on money laundering, 
    conspiracy, embezzlement and bank fraud charges in US District Court.

    The government said he drained the credit unions of $40 million to $75
    million through phony mortgage loans, straw sales and land flips.

    Last month, US marshals circulated wanted posters for Mangone in Boston
    after he had been seen on Cape Cod, in Scituate, Weymouth, his native
    East Boston and in Springfield.

    A lawyer who represents 67,000 member-owners of the Digital credit 
    union, which Mangone once headed, said he was "ecstatic" at the news 
    of the surrender.

    Joseph Melchione said the credit union, which has rebounded 
    dramatically, is "grateful he's been apprehended without having to
    pay the $25,000 reward money."

    Mangone was known as a high-stakes gambler who enjoyed fancy cars, 
    limousine rides and casinos.

    Instead of quaffing champagne, Melchione said, "Now we hope he's be
    wearing a striped suit.  Nobody deserves it more than him."

    US Attorney Donald K. Stern said, "Mangone surrendered in the face of 
    mounting pressure by the US Marshals' Service and the FBI to track him
    down."

    The surrender, he said, is the "latest example of the commitment by
    law enforcement to bring fugitives back to Massachusetts to face the
    music."

    US Marshal Nancy McGillivray said Mangone is likely to be back in 
    Boston within 10 days.

    "We committed a heavy concentration of manpower and effort to bring
    Mangone to justice," McGillvray said.

    Melchione said Mangone's surrender brings the credit union nearer to
    closing a painful chapter in its history.

    The credit union suffered from the crimes, but Melchione said it has 
    bounced back and now has $355 million in assets and a delinquency 
    rate one third of the national average.

    Mangone can take little comfort from the sentences his codefendants 
    received at the Feb. 17, 1994 sentencing he skipped.

    James Smith, a Cape Cod builder and cofounder of the Barnstable Credit
    Union with Mangone, is serving a 15-year sentence.  Rockport developer
    Ambrose Devaney is serving a 37-month sentence, and suspended attorney
    Robert Cohen is serving a 10-year sentence as a result of the case.  
    Cohen and Smith were also ordered to pay $20 million is restitution.

    Maybe he turned himself in because he ran out of money.
    I gather his run rate is pretty high.

	Paul

    re "challenging the Feds to find the money":
    
    In some countries the system has 'features' such that he'd probably
    have told all by now (it's been almost a week).  We're better off here
    without such things, but they certainly can appeal to one's vindictive
    side!
    
    Dick

    The Middlesex News article on his wife stated that she had no
    idea of where any of his money was.  

    I do hope his sentence is extended because of evasion of justice.
    He really should spend at least the next 20 years behind bars with
    no parole and no conjugal visits permitted!

    

The paper this morning said his bail was formally revoked.

			Steve

From:	US2RMC::"[email protected]" 10-SEP-1995 14:23:05.92
To:	molar::delbalso
CC:	
Subj:	Mangone Sentencing

Jack,

I thought this may be of interest to the DCU notesfile readership.

Richard Mangone will be sentenced on Tuesday, September 12,
1995.

The sentencing will take place at 2:00pm in Judge Young's
Courtroom in the J.W. McCormack Post Office and Courthouse
Building in Boston.

Regards,

Dave Garrod
Secretary DCU Board of Directors

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% Date: Sun, 10 Sep 1995 13:44:04 -0400
% From: [email protected]
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% To: molar::delbalso
% Subject: Mangone Sentencing

I have received word from the Credit Union
indicating that Richard Mangone received a
24 year sentence.

I'm sure there will be more updates.

Gim

    What does this mean in real-time?  Parole???  What about restitution??
    Did he look happy???  ;*)

    What about the evasion of justice charge???

    justme....jacqui

Today's Nashua Telegraph had a short item about his sentencing. It
stated that he got a 24 year sentence with NO parole. By the way, the
guy is 50 years old, so that means he is locked up until age 74. He was
also ordered to repay $41,000,000 to the DCU (like we'll ever see any
of that money!)




   Dick

Re: .66

Actually, he read a very moving statement.  Seems he's learned the errors of his
ways, and apologized to all the people he hurt.  But, as the Judge Young said,
he deceived so many for so long, it is difficult to know when to believe him

By the way, the judge exceeded the federal maximum sentencing guidelines when he
sentenced him to 24 years.

I personally am glad to see a serious sentence for this first of major credit
union fraud convictions.  Let it be a lesson to any others.

Elaine

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                        -< Topics of Interest to Women >-
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Note 37.3105        "In the News" (clips only, no discussion)       3105 of 3116
IJSAPL::ANDERSON "It's apple harvest time!"          46 lines  13-SEP-1995 04:28
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    AP 12 Sep 95 23:22 EDT V0169
 
    Copyright 1995 The Associated Press. All rights reserved.
 
    Credit Union Head Sentenced

    BOSTON (AP) -- A credit union executive who surrendered after 18 months
    on the run was sentenced to 24 years in prison for bank fraud Tuesday
    and ordered to pay more than $41 million in restitution. 

    Richard Mangone received the harshest sentence ever handed down for a
    white-collar crime in Massachusetts, Assistant U.S. Attorney Victor
    Wild said.  "Mr. Mangone, you've ruined a lot of people's lives, lots
    of lives," U.S. District Judge William Young told him, noting that the
    sentence did not take his flight into account. 

    Mangone, 50, was president of the Digital Employees Credit Union and a
    co-founder of the Barnstable Community Federal Credit Union, which
    prosecutors said he boasted of using as his "own personal piggy bank." 

    Mangone was convicted in 1993 of conspiracy, bank fraud and money
    laundering for his role in the theft of millions from the credit
    unions. Six others were convicted and sentenced in the scheme, and
    charges are still pending against two other former Barnstable
    employees. 

    Four days before Mangone was to be sentenced in 1994, he slipped off
    his electronic ankle monitor and escaped into a snowstorm. 

    On Aug. 29, he walked into a church in Bowling Green, Ky. and
    surrendered to a priest. 

    Mangone apologized for running, telling the judge he did it because he
    feared a life term, but had to turn himself in because "few individuals
    in our society can survive without family" and because a religious
    experience persuaded him to take that course. 

    Mangone is appealing the sentence, which includes payment of
    $41,274,202 in restitution and no possibility of parole. His lawyer
    called the sentence "terminal" for a 50-year-old man. 

    But the prosecutor was unsympathetic. 

    "There were statements made by Mr. Mangone when he was arrested that
    lead us to believe he may have access to substantial funds yet," Wild
    said. 

Does anyone know the real story about the alleged comments
Mangone made regarding "finding the money"?  If there is any
truth to them, then any comments made indicating he has had
a change of heart can be taken with a grain of salt.  From
the little bit of information presented, it appears the man
is a con artist and a criminal who would do it all again if
given the chance.  He deserves every day of the 24 years and
then another 10 for running.

Ray

RE: .67

>> ... He was
>> also ordered to repay $41,000,000 to the DCU (like we'll ever see any
>> of that money!)

A small correction.  The $41 million in restitution is not all earmarked for
DCU.  Remember, the NCUA covered the failure of the Barnstable Credit Union.  I
understand they get most of any money that is paid, for that reason.

Elaine

>Does anyone know the real story about the alleged comments
>Mangone made regarding "finding the money"?

I'm sorry - I haven't heard about any of this before. Have you
a pointer?

>> >Does anyone know the real story about the alleged comments
>> >Mangone made regarding "finding the money"?
>> 
>> I'm sorry - I haven't heard about any of this before. Have you
>> a pointer?

See .51

    Any person can and does say if convicted that they are repentent
    and sorry for any and all harm caused by their actions.  It does
    make good copy.  Saying this, I suggest that any person who takes
    this type of action at their sentencing should also place a bag
    of salt upon the judge's bench!   A person truly repentent does
    not slip one's cuff and beat the system for any length of time!

    IMHO, of course...

    The Boston glob also insicated that the reward of $25,000.00 had been
    paid to two organizations designated by the priest that Charles turned
    himself in to. 
    Some of that money (41 mil) may still be around but most of it was lost
    in bad real estate loans.
    He was one of my customers and very polished and did a great deal for
    the DCU in terms of getting free or discounted products and services
    for the DCU.  As I recall , all of the original HW 11-70's and such
    were donated to the CU. They were designated an OEM and were to sell
    the VAX HW along with the SW they were having developed to run any CU.
    It would be interesting to know where that went

re:                      <<< Note 672.73 by NPSS::KOPACKO >>>

Thanks. If anyone has the article alluded to in .51, I'd be happy to scan
it in here. It sounds like it might be interesting reading.

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*** Man charged with aiding Mangone; faces 15 years

BOSTON, Mass.--U.S. Attorney Donald K. Stern here announced that Paul
Ronty, of Weston, Mass., has been charged with being an accessory
after the fact to bank fraud in a case with which CU watchers are very
familiar.

The indictment charged that Ronty sent money on multiple occasions to
Richard Mangone, former president of Digital Employees Federal Credit
Union while he was a federal fugitive. During the spring and summer of
1995, Ronty allegedly sent wire transfers in amounts ranging from
$1,000 to $3,000 in his own name, and at other times, used the name of
a deceased relative and a former neighbor. Ronty used the alias
Riccardo Infante in place of Mangone's real name.

The cash, totaling near $12,000 helped to keep Mangone on the run and
avoid capture by U.S. Marshals for months.

Mangone was convicted in July, 1993 of bank fraud which resulted in
the liquidation of Barnstable Community FCU and deeply wounded Digital
FCU. He was under house arrest with electronic monitoring pending
sentencing, when in Feb., 1994, only days before appearing before the
judge, he removed the device and fled. He gave himself up in Bowling
Green, Kentucky on Sept. 5th, 1995 and is currently serving a 24-year
sentence

If convicted, Ronty faces up to 15 years imprisonment and $500,000 in
fines. The investigation into Mangone's activities while on the run
continues.

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